(Adds table and details on first-quarter issuance data)
NEW YORK, May 17 U.S. stock and bond supply rose
in the first quarter while daily trading volume for stocks and
some bonds declined as other bonds saw increased trading, a
financial industry group said on Wednesday.
U.S. long-term securities issuance totaled $1.90 trillion in
the first quarter, up 18.7 percent from $1.60 trillion in the
fourth quarter and up 13.1 percent from $1.68 trillion a year
earlier, said Securities Industry and Financial Markets
"Issuance increased quarter-over-quarter across all asset
classes except for municipal, mortgage-related and asset-backed
securities. Year-over-year growth was positive in all asset
classes except municipal debt," the group, which represents Wall
Street banks and large institutional investors, said in a
While securities supply grew solidly in the first quarter,
the amount of stocks and bonds changing hands each day showed a
mixed picture, SIFMA data showed.
Average daily stock trading volume fell 3.1 percent to 6.8
billion shares in the first quarter from the fourth quarter and
down 20 percent from the first quarter of 2016, it said.
On a dollar basis, average daily equity volume declined 1.7
percent to $269.7 billion in the first quarter from $274.3
billion in the fourth quarter and down 11.7 percent from $305.5
billion a year ago.
Daily trading volume in the $14 trillion Treasuries market
by primary dealers or the top 23 Wall Street firms that do
business directly with the Federal Reserve averaged $539.7
billion in the first quarter, a 2.4 percent decline from the
$552.9 billion in prior quarter and down 0.4 percent from a year
earlier, SIFMA said.
On the other hand, average daily trading volume on
investment-grade corporate bonds was $19.7 billion in the first
quarter, up 31.9 percent from the fourth quarter and 13.0
percent higher than a year ago.
Daily trading volume on junk bonds was $8.9 billon in the
first three months of 2017, up 24.3 percent from the final three
months of 2016 but down 5.9 percent from a year earlier.
Below is a summary of long-term U.S. securities issuance
Bond type Q1 2017 Chg vs Q4 2016 Chg vs Q1 2016
(in bln) Q4 2016 (in bln) Q1 2016 (in bln)
Treasury $654.1 +44.8 $451.6 +13.1 $578.2
Corporate $468.7 +79.0 $261.8 +17.9 $397.4
MBS $406.5 -27.3 $558.9 +12.3 $361.9
Agency $151.2 +49.1 $101.4 +2.5 $147.4
Municipal $90.5 -13.7 $104.9 -9.4 $99.9
ABS $75.8 -3.5 $78.6 +37.5 $55.1
Equity $57.7 +23.4 $46.8 +29.4 $44.6
(Reporting by Richard Leong; Editing by Chizu Nomiyama and Bill